Oil falls for 4th day on expectations Russia-Ukraine peace could elevate provide

By Yuka Obayashi

TOKYO (Reuters) – Oil costs fell for a fourth day on Monday on expectations a Russia-Ukraine peace deal may ease sanctions disrupting provide flows and on issues that international tariff wars may gradual financial progress and weaken vitality demand.

Brent crude futures slid 20 cents, or 0.2%, to $74.59 a barrel by 0112 GMT. Brent has slumped 3.1% prior to now 4 classes after U.S. President Donald Trump and his administration officers introduced they’d begun discussions with Russia to finish the struggle in Ukraine.

U.S. West Texas Intermediate crude was at $70.51 a barrel, down 23 cents, or 0.3%. WTI is down 3.8% over the previous 4 classes, and earlier on Monday dropped to as little as $70.12, its lowest since December 30.

U.S. President Donald Trump mentioned on Sunday he believes he may meet “very quickly” with Russian President Vladimir Putin to debate ending the struggle in Ukraine.

His feedback come as the USA and Russia are getting ready for preliminary talks in Saudi Arabia within the coming days.

U.S. Secretary of State Marco Rubio additionally mentioned on Sunday Ukraine and Europe could be a part of any “actual negotiations” to finish Moscow’s struggle, signalling that U.S. talks with Russia this week have been an opportunity to see how severe Putin is about peace.

“Markets are down on the prospect of a Russia-Ukraine ceasefire and potential sanction reduction on Moscow,” mentioned Hiroyuki Kikukawa, president of NS Buying and selling, a unit of Nissan Securities.

“Issues over an financial slowdown from tariff wars, pushed by Trump’s actions, are additionally weighing on costs,” he mentioned, predicting WTI to commerce between $66-$76 for some time as additional declines in oil costs may curb U.S. oil manufacturing.

Sanctions by the U.S. and European Union on Russian oil exports have curbed its shipments and disrupted seaborne oil provide flows. Lifting the sanctions within the occasion of a peace deal ought to increase international vitality provides.

The chance of a world commerce struggle can be pressuring costs after Trump final week ordered commerce and financial officers to review reciprocal tariffs in opposition to international locations that place tariffs on U.S. items and to return their suggestions by April 1.

U.S. vitality companies final week added oil and pure fuel rigs for a 3rd week in a row for the primary time since December 2023, vitality providers agency Baker Hughes mentioned in its intently adopted report on Friday.

The oil and fuel rig depend, an early indicator of future output, rose by two to 588 within the week to February 14.

(Reporting by Yuka Obayashi; modifying by Christian Schmollinger)